Put me down as surprised, even skeptical. Per the St. Louis Fed, for the first time since 1993 the population shrunk year over year, from 2,711,612 in 2019 to 2,707,303 in 2020. Who knew? This also follows negligible growth in the prior two years. You wouldn’t know it in downtown Miami or in any of […]
The chart above displays the number of closed sales of Miami-Dade commercial properties, including improved commercial property and vacant commercial land, that were recorded in the Miami MLS for the two years ending April 2021. Last month, April 2021, was off somewhat from the prior month’s blistering pace, but was nonetheless in the upper end […]
Above are charts for the 5-Year and 10-Year breakeven inflation rate, commonly referred to as the TIPS spread, for the five years ending April 30, 2021. This is a calculation of the difference in the yields, i.e. the spread, between United States Treasury bonds and Treasury Inflation-Protected Securities (TIPS) of the same maturity. It is […]
Millage Rates in Miami-Dade County by Municipality Below here millage rates, which are used to calculate property tax, are listed in alphabetical order by municipality for the various municipalities within Miami-Dade County. These are also show in graph form above, sorted from high to low, with Biscayne Park having the highest millage rate. This highest […]
Yields on 5-year U.S. Treasury Notes edged up to 0.92% by the end of March. This is low, to be sure, but up from the barely-keeping-its-head-above-naught 0.36% yield booked at the prior year’s end. This yield is considered to most closely track commercial real estate financing cost, and those are of particular interest to investors […]
The chart herein displays the number of closed sales of Miami-Dade commercial properties, including improved commercial property and vacant commercial land, that were recorded in the Miami MLS for the two years ending March 2021. March, as can been seen, was a record for the past two years. Looking back farther than the data in […]
The sales to list price ratio as reported by the Miami MLS for improved commercial real estate (MLS classification: commercial/industrial) within Miami-Dade county in Florida priced from $1 million to $10 million in March came up a bit to 93% from 89.5% the month prior. Though off of highs in the past 10 years, this […]
The TIPS spread is the difference in the yields between United States Treasury bonds and Treasury Inflation-Protected Securities (TIPS). It is a useful and oft-quoted measure of expectations for (CPI) inflation in the financial markets. The spread indicates expected inflation. Real money is buying these bonds. TIPS pay interest every six months, based on a […]
These probability distribution charts are the topic of this article. The first is a normal distribution of returns using a combination of a cap rate of 5% and rent growth of 2% (and assuming an unchanged cap rate a year later) further assuming an annualized standard deviation of returns of 6.5%. The second is how […]
When considering changes or potential changes in commercial real estate capitalization rates (cap rates), market participants tend to most commonly think of interest rates. However, rent growth assumptions also affect cap rates as the more one expect earnings to grow over time the less return an investor is willing to accept now. This is just […]
The chart in this post shows the number of closed sales of Miami-Dade commercial properties, including improved commercial property and vacant commercial land, that were recorded in the Miami MLS for the two years ending February 2021. One can see that February was a fairly normal sales month for Miami commercial real estate. This is […]
The sales to list price ratio as reported by the Miami MLS for improved commercial real estate (MLS classification: commercial/industrial) within Miami-Dade county in Florida priced from $1 million to $10 million in February drifted lower to 90.3% from 94.1% the month prior. Though the lowest it has been since September of 2020, this percentage […]
To use this effectively, you’ll want to filter by zoning. To do that, you’ll need to access this on Google Maps directly using the link later in this post. First, however, read the following: This map was made by using publicly available sales from 2018 to 2020, filtering out sales types such as multi-parcel sales […]
Finding myself involved in multifamily development deals of late, I tasked myself with updating my general feel for area construction costs of such projects. What I discovered matched all such conversations of late and can be summed in a word; escalating. One conversation was with a principal of a substantial area general contractor. When I […]
The top image shows various listing performance metrics for a premium listing in Loopnet for the light industrial property at 1007 Park Centre Blvd, Miami, FL 33169. Highlighted is detail page clicks, the number of times users clicked through and viewed the detail page for the property on Loopnet. The bottom image displays the same […]
The Biden administration recently announced an initiative to push the United States toward more electric vehicles, less powered by gasoline. Automotive News covered this in their article suggesting this push gives Detroit the cover they’ve needed and wanted to go electric. This begs a question pertinent to commercial real estate; if there are less gas […]
